Correlation Between Easyhome New and Hangzhou Weiguang
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By analyzing existing cross correlation between Easyhome New Retail and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Easyhome New and Hangzhou Weiguang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Easyhome New with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Hangzhou Weiguang.
Diversification Opportunities for Easyhome New and Hangzhou Weiguang
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Easyhome and Hangzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Easyhome New is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Easyhome New Retail are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Easyhome New i.e., Easyhome New and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Easyhome New and Hangzhou Weiguang
Assuming the 90 days trading horizon Easyhome New Retail is expected to under-perform the Hangzhou Weiguang. But the stock apears to be less risky and, when comparing its historical volatility, Easyhome New Retail is 1.16 times less risky than Hangzhou Weiguang. The stock trades about -0.02 of its potential returns per unit of risk. The Hangzhou Weiguang Electronic is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,788 in Hangzhou Weiguang Electronic on September 1, 2024 and sell it today you would lose (352.00) from holding Hangzhou Weiguang Electronic or give up 12.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.77% |
| Values | Daily Returns |
Easyhome New Retail vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Easyhome New Retail |
| Hangzhou Weiguang |
Easyhome New and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Hangzhou Weiguang
The main advantage of trading using opposite Easyhome New and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New position performs unexpectedly, Hangzhou Weiguang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Easyhome New vs. Bank of China | Easyhome New vs. Kweichow Moutai Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of Communications |
| Hangzhou Weiguang vs. China Life Insurance | Hangzhou Weiguang vs. Cinda Securities Co | Hangzhou Weiguang vs. Piotech Inc A | Hangzhou Weiguang vs. Dongxing Sec Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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